South African Representative, CRIRSCO Because I believe it best demonstrates the synergies between the CRIRSCO Template and the UNFC 2009 and how the two together address the needs of all sectors working with mineral resources. icmm The relationship between the Committee for Mineral Reserves International Reporting Standards (CRIRSCO) Template 2013 and the United Nations Framework Classification (UNFC for Resources) South African Representative, CRIRSCO Ankara, August 25 2017

Presentation Agenda Objective and purpose; UNFC for Resources; The Template; Bridging documents; Non–economic mineralisation; NEA/IAEA Mapping

CRIRSCO - Principle Objective To promote best practice in the international public reporting of Mineral Exploration Results, Mineral Resources and Mineral Reserves. CRIRSCO is an international advisory body without legal authority, relying on its constituent members to ensure regulatory and disciplinary oversight at a national level. It recognises the truly global nature of the minerals industry and the agreed need for international consensus on reporting standards.   To refresh you on the principle objective of CRIRSCO it is……

UNFC for Resources Generic classification system applicable to Fossil Energy and Mineral Reserves, and Nuclear fuels; Provides a single framework on which to build international energy and mineral studies; Allows for non-economic mineralisation Now applicable to renewable energy Important tool for harmonized generic terminology at a level suitable for global communication

UNFC for Resources Framework classification not a reporting standard No competency requirement No Securities Exchange recognition

UNFC for Resources Applied directly or as harmonizing tool Generic, Principle based 3 Axis Economic and Social, Feasibility, Geological (G axis) Numerical code Applied directly or as harmonizing tool

UNFC for Resources Commercial Projects - green Potentially commercial - yellow Non commercial - Red Exploration projects Blue Additional quantities in place - Pale blue Other combinations - white Extracted quantities- purple

CRIRSCO Engagement United Nations Economic Commission for Europe (UNECE) (1999) Society of Petroleum Engineers (SPE) (2004) International Accounting Standards Board (IASB) International Atomic Energy Agency (IAEA) Member of TAG and EGRC Bureau CRIRSCO has ongoing relationships with UNECE and its UNFC founding member in 1999 SPE and the PRMS bridging documents IASB who were at one stage wanting to have financial reporting standards for companies with mineral assets Recently worked with IAEA who publish the RED BOOK which records the supply and demand of nuclear fuels principally Uranium and Thorium

General Relationship between Exploration Results, Mineral Resources and Mineral Reserves Figure 1 in the CRIRSCO Template Fundamental framework of CRIRSCO Template and all the aligned codes Two dimensional Geological , Economic and Feasibility horizontal

Re-Oriented Figure Showing the CRIRSCO Categories (Shaded) and Additional Categories in Other Systems The Modifying Factors Economic and Feasibility Reorientated to compare with other systems geological axis along the bottom and Economic and Feasibility in the vertical CRIRSCO categories of Mineral Reserves Mineral resources and Exploration results are shaded Range of Technical Uncertainty

Comparison of the Petroleum Resource Management System (PRMS) and the CRIRSCO Template Petroleum (SPE/WPOC/AAPG/SPEE 2007) Minerals (CRIRSCO 2013) Marginal Contingent Resources Using the previous slide we now compare The Template with PRMS PRMS has Reserves Proved Probable and Possible equivalent to Mineral Reserves note that this is different to the Template Contingent Resources equivalent to Mineral Resources Sub marginal Contingent Resources which has no equivalent in the Template it is Discovered not economic. All these categories are discovered. It then has Prospective resources which are undiscovered equivalent to exploration results Sub-Marginal Contingent Resources Range of Technical Uncertainty Range of Technical Uncertainty

UNFC – CRIRSCO TEMPLATE

CRIRSCO Template - UNFC

Mineral Resource A Mineral Resource is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. So even at the stage of declaring a resource the Competent Person must make a preliminary assessment of the technical and economic factors to ascertain whether there are reasonable prospects for eventual economic extraction.

Non-economic Mineralisation Strategic planning at country or global level Corporate mineral inventory management exploration target definition development options purchase price accounting Why do we need a record of mineralised inventory or mineralisation that does not meet the requirement of a mineral resource? Firstly needed for strategic long term planning of infrastructure, global level strategic planning for energy supply up to 2050 all tied in with climate change Within companies they would need it for mineral inventory management and in particular…..

Classification of non-economic mineralisation

IEA/IAEA Classification Mapped and bridged to CRIRSCO Template Mapped and bridged to UNFC for Resources

UNFC CLASSES AND SUB-CLASSES UNFC CATEGORIES UNFC-2009 CLASSIFICATION CRIRSCO TEMPLATE NEA/IAEA CLASSIFICATION UNFC CLASSES AND SUB-CLASSES UNFC CATEGORIES CRIRSCO CLASSES AND SUB-CLASSES CLASS SUB-CLASS E F G IAEA-NEA CATEGORIES STATUS COMMERCIAL PROJECTS ON PRODUCTION 1 1.1   MINERAL RESERVES PROVED IDENTIFIED RESOURCES RAR ** EXISTING 2 PROBABLE APPROVED FOR DEVELOPMENT 1.2 COMMITTED JUSTIFIED FOR DEVELOPMENT 1.3 PLANNED POTENTIALLY COMMERCIAL PROJECTS DEVELOPMENT PENDING 2.1    MINERAL RESOURCES MEASURED IDENTIFIED RESOURCES PROSPECTIVE INDICATED 3 INFERRED IR* DEVELOPMENT ON HOLD 2.2 NON-COMMERCIAL PROJECTS DEVELOPMENT UNCLARIFIED 3.2 INVENTORY (NOT DEFINED IN TEMPLATE) DEVELOPMENT UNCLARIFIED (NOT DEFINED IN TEMPLATE) UNCLARIFIED DEVELOPMENT NOT VIABLE 3.3 2.3 NOT VIABLE EXPLORATION PROJECTS 3.1 4 EXPLORATION RESULTS UNDISCOVERED RESOURCES PROGNOSTICATED RESOURCES 3.2, 3.3 SPECULATIVE RESOURCES

Conclusion Need for management of inventory and resources Company level Country level Global level Definitions must be consistent

Acknowledgements All slides www.crirsco.com